Organized retail could grow to $200 billion

Organized retail could grow from $40 billion to $200 billion in the next five to seven years.

| TNN | Jun 24, 2014, 05.55 PM IST

MUMBAI: Organized retail could grow from $40 billion to $200 billion in the next five to seven years, with successful models of retail namely food and grocery sectors to footwear to lifestyle products doing well and giving high returns to the investor, Rakesh Jhunjhunwala, Partner, Rare Enterprises, said at the CII National Retail Summit here on Tuesday.

It was stated that 2014 would be a good year for retailing in India as income levels have risen for much of the Indian population. Domestic brands and local companies remained dominant among the players operating in retailing in India during 2014. In spite of various relaxations made to the rules regarding foreign direct investment in India in, international companies remain cautious about India, according to J Suresh, MD and CEO, Arvind Lifestyle Brands.

As an industry, the retail sector is seeking more foreign institutional investor (FII) participation in retail, as it will ease the funds crunch especially for unlisted retailers. In addition, there is much anticipation that there will be more clarity on the rollout of GST, which will help in uniform taxation across states and ease the service tax pressure.

Over the past decade, the FMCG (Fast Moving Consumer Goods) sector of India has been annually growing at a consistent rate of 11%. This double digit growth each year has been possible by increasing consumer demands. In the past five years the growth had then accelerated to 17%. However, Indian companies are striving hard to keep up with ever-changing consumer preferences.

Kurush Grant, Chairman, CII National Committee on FMCG 2014-15 and executive director, FMCG Businesses, ITC, said over the last year, FMCG has come under pressure and hence what is needed by the industry is to think about what to do to recreate itself. There is a need to understand the consumer better and finally the last mile connectivity — the distribution infrastructure and capabilities are critical to achieving success for FMCG businesses.

A report titled "Changing your Orbit - The Handbook for Transformation in FMCG & Retail Businesses" by CII and The Boston Consulting Group, was unveiled and it highlights the need and approach of how an integrated top-down effort to drive successful transformation can be undertaken in the FMCG and retail industries.

RELATED

From around the web

More from The Times of India

Recommended By Colombia

From Around the Web

More From The Times of India

Recommended By Colombia

Comments

Characters Remaining: 3000

OR PROCEED WITHOUT REGISTRATION

Share on Twitter

SIGN IN WITH

FacebookGoogleEmail

Refrain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks, name calling or inciting hatred against any community. Help us delete comments that do not follow these guidelines by marking them offensive. Let's work together to keep the conversation civil.

Islamic State on Thursday officially claimed responsibility for a gun and bomb assault in the centre of Jakarta earlier in the day that killed seven people, five of whom were attackers.

Bringing back horrific memories of the Dadri lynching incident, a group of 'cow protection' vigilantes beat up a Muslim couple on a train in Madhya Pradesh on the suspicion that they were carrying beef.